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02 October 2012

Minnesota's Unemployment Rate Rises 0.1% in August 2012

By Kris Allen


The August unemployment rate for the State of MN was published at 5.9%. This is an increase of 0.1% from the the July 2012 rate and is the second consecutive month with a rate increase. In August there were (just) over 175,000 individuals unemployed in Minnesota. This is an increase of about 2,700 over the previous month. Also, the number of employed individuals also fell by 6,000 to approximately 2.79 Million. This, together with a corresponding decrease of around 3,300 in the total civilian workforce caused the small 0.1% rise in this month's rate.

One year ago in August 2011 the unemployment rate in Minnesota was at 6.5%. In 2011, there were roughly 193,000 unemployed workers in Minnesota. This number is around 18,000 more than in August 2012. Also, when compared to 2011 there are approximately 8,200 more people employed in the state. With a drop of around 9,600 in the total state workforce gives us the 0.6% decrease in the unemployment rate from August 2011 to August 2012. The current 5.9% unemployment rate is the highest MN has experienced since back to November 2011.

Minnesota is not alone. Many others state in the Midwest have also seen their unemployment rates rise recently. Wisconsin's unemployment rate went up 0.2% in August to it's highest rate in a year (7.5% in August 2011). Iowa's rate also went up 0.2% in August to 5.5%. South Dakota's rate was up 0.1% to 4.5% for the month. The State of Illinois was also higher at 9.1% in August. The only exception to this trend was North Dakota who's rate in August was unchanged at just 3.0%. However, Minnesota's unemployment rate is still much lower than the U.S. August 2012 average of 8.1%.

The major business sector statistics for MN for August were varied. Up for the month were Information, Education & Health Services, Leisure & Hospitality, and a big increase in Government. Down in August were Mining and Logging, Construction, Manufacturing, Trade Transportation and Utilities, and Professional & Business Services. The largest gain over the past 12 months was in Professional & Business Services (4.1%). The largest loss was in Leisure & Hospitality (-3.6%). The biggest employment major business sector in MN continues to be Trade, Transportation, and Utilities at around 494,000 employed.

In roughly a month we'll look at the September 2012 employment numbers for Minnesota. We'll once again review the State's business sectors and employment trends. Please remember that previously released employment numbers may be adjusted at a later date.




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